In a landmark decision, the outcome of which affects claims made by some 1,000 Irish pubs and restaurants, Mr Justice Denis McDonald found that a policy sold by FBD covered losses the pubs sustained by having to close due to the global health emergency.

In a lengthy and detailed judgement delivered on Friday the judge disagreed with FBD’s interpretation of its policy and said cover is not lost where the closure is prompted by nationwide outbreaks of disease, provided that there is an outbreak within the 25-mile radius and that outbreak is one of the causes of the closure

The issue of quantifying the losses, the judge said, will be dealt with at a later date.

The four test actions were taken by Dublin bars Aberken, trading as Sinnotts Bar; Hyper Trust Ltd, trading as The Leopardstown Inn; and The Inn on Hibernian Way Ltd, trading as Lemon & Duke.

The fourth action was taken by Leinster Overview Concepts Ltd, the owner of Sean’s Bar in Athlone, Co Westmeath.

The publicans challenged FBD Insurance Plc’s refusal to indemnify them, as well as the insurer’s stance that its policies of insurance did not cover the disruption caused to businesses by Covid-19.

The dispute arose after the insurer refused to provide policy holders with cover after the pandemic resulted in the first temporary closure of businesses, in mid-March 2020.

Judgment in the case, which took several weeks to hear, was due to be delivered in January.

The decision was deferred to allow the parties make submissions to the court arising out of a judgment from the UK Supreme Court where similar issues were raised.